News of the demonetization of the 500 and 1,000 rupee notes came out earlier this week. According to the Chief Minister Laxmikant Parsekar, those who have black money will be greatly affected, and those who have clean money do not need to worry.
It is still unknown how the demonetization will impact on the Goa casinos in the long term, however, in the short term, the casinos have been greatly affected. Some casinos have continued to accept the demonetized bank notes, while others will only accept banknotes of other denominations. Those who are still accepting them have imposed a limit as to how many can be used in order to prevent players from dumping black money in exchange for casino chips.
The big problem for the casinos is how they pay out the winning players. Since most winners are no longer prepared to accept the Rs 500 and Rs 1,000 notes, it makes it very difficult to pay out winnings.
An offshore casino operator who preferred to remain anonymous commented on the situation: “So you want to catch a thief, and to do so, you light your house on fire. The thief may be caught, but your house has been burned.”
The entire county is reeling from the withdrawal of the Rs 500 and Rs 1,000 banknotes. People around the country have been forming long queues to withdraw funds from ATMs, however, the majority of ATMs have run out of cash fairly quickly. Stories have emerged of those who have been unable to purchase food or pay for transport to hospital because they only had the larger bank notes.
At this time, the banks do not have enough funds to cope with the demonetization of two important monetary denominations in India. Once the banks have sufficient funds to deal with the demand, things should begin to normalize again.
If the Goa casinos are greatly affected, the state will feel it too since the income from gambling taxation will drop.